「Trump Account」 to Allow Billionaires to Donate Stock Directly

May 6 — U.S. White House and Treasury officials have been holding internal talks about expanding the scope of the "Trump Account" (officially designated the 530A Account), according to The New York Times. Current discussions include allowing the world’s wealthiest individuals to donate shares of their own companies. Presently, the Trump Account only permits cash investments in diversified index funds and bars stock donations. The proposal aims to access the unrealized wealth of billionaires such as Elon Musk and Huang Renjun. If rules are revised, Musk could donate Tesla or SpaceX shares directly, while Huang Renjun could contribute Nvidia stock. Instead of slow, steady returns from index funds, children would be able to hold long-term positions in high-growth large-cap tech stocks and potentially realize significant gains. Donors would transfer billions of dollars’ worth of high-value shares without incurring capital gains taxes, while claiming full charitable donation tax deductions based on the shares’ fair market value — further reducing their tax burden. However, the idea has stirred debates within the Treasury Department. The original limit to diversified index funds was intended to protect children from market volatility. Amending current rules would require regulatory changes, which could necessitate legislative action. (Kryptonite)